NOW At Work
There is no Silver Bullet. Various Economists, Experts and ProfessionalsThe shortcut: How to get from A -> B in the shortest time possible.
We are part of a global economy. For any nation to be able to break free from the financial system and re-evaluate its values some very simple steps need to be taken. This is one way we could achieve breaking free of the financial system and move towards a more sustainable economy:
We must use the current governance structures of today. Remember we're trying to keep this simple and by trying to change too much too quickly, things can easily get out of control or even get bogged down in toomuch detail and process. We'll apply the K.I.S.S. principle (Keep It Simple Stupid).
1 bank - to manage the finances of the country.
1 government - to facilitate the needs of councils across the country.
Many councils - to facilitate the needs of the community.
The Bank and its function:
They will do what they currently do. Sure there may be some slight changes, but they will be very very slight changes. Their function will become clearer as we go along.
The Government and its function:
Again, they will do what they currently do. Again there will be some very very slight changes. Their function will also become clearer as we go along.
The Councils and their functions:
Broken record time, they will do what they currently do. There will be some very very slight changes. Their function will also become clearer as we go along.
As We Go Along:
It works better with a practical example, so here we go.
Square 1! How to break free from the financial global economy without sending the rest of the world into a damaging economic shock. We've seen the damage and how easy it is to crash the system recently and as we're trying to manage our withdrawal gracefully, without upsetting the apple cart, we must still produce a GDP. This means that we must balance the current state of our imports and exports and the associated financial value that is perceived by the central banks and financial markets of the world.
Anyway, the example.
It's much simpler than you think and if you have kids you've likely seen it happen before. My kids took the shoes off the rack in the garage and set them up behind a small plastic table. In the table sat a till. Daughter 1 walked up and asked for a pair of shoes that she liked. Daughter 2 said that they cost $X and without money changing hands, Daughter 2 entered the value into the till. Daughter 1 walked away with the shoes without paying. Daughter 3 did the same as Dauighter 1 and walked away with her free shoes.
Done!. Wait, what? How is that an example of how it works? Ok, let's start at the beginning. After all, the shoes were made somewhere before they ended up on my kids feet... soon to be outgrown or more likely destroyed.
Manufacture: The shoes came from China. Someone/some machine made them. They cost $5 to make.
Shipping: The shoes were shipped by boat. The ship charged $5 and that was added to the pair of shoes, so the shoes now cost $10.
Landing: The shoes have landed at the port where duty/GST/port chargers/handling fees etc... have made the value of the shoes $20.
Transport: The shoes have been transported to the shop and the associated costs have pushed the value of the shoes to $30.
Sales: The shoes have been put on the shelf for $50 to cover expenses i.e. the sales assistant, building rent, GST at point of sale etc...
Sure there may have been a few steps that have been missed, but the basics ar there. Let's look at what happened in the scenario apply that to the goods entering the country. Ordinarily someone will have had "earned money" doing a job. They need a new pair of shoes. The shoes that they want cost $50. No $50, no shoes, irrespective of how badly Daughters 1 and 3 needed the shoes.
We know that by the time the shoes reach the shop floor that they will cost about $50. Instead of individuals "earning" a wage, the government accruing some tax, the haulage firm applying their costs, the wages of the shop assistant, the electicity/rent "bills" of the shop etc... perform the following calculations using a piece of software.
Bank - $10 out, $50 in (the value of the shoes entered into the till and the balance transferred as a credit to the bank). We account for the costs of consumption at the point where the goods have entered the country. This bypasses the need for a financial system as goods/products/services have already been paid for at the point of origin. I can walk into a shoe shop and pick up a pair of shoes, for free.
The bank will know how much money is flowing through the country, which means that we can produce a GDP so that the rest of the world doesn't go into economic shock.
As mentioned earlier, simple and one step at a time, make use of the existing economic and power structures that are in place, and then change the rules as is applicable as they become outdated. No government intervention has been required either. At this point in time, we have removed the need for a financial system, we have virtualised cashflow and we will still be producing GDP without changing anything else, nothing, nadda, zip, fuck all.
Essentially nothing has changed in regards to finances other than no physical cash or trade takes place. However should a person need a pair of shoes, they can have them without the need of money. After all, shoes are there to be worn, not decorate shelves. We have also removed the need for people to thieve shoes to make money, I mean, they can thieve them if they like, but who are they going to sell them too if the potential buyer can get their own shoes free from the shop?
Now there's no need for a shop assistant, just a shelf stacker. If that takes 2 hours per day, then what once was a shop assistant can move on and do something else with their life, perhaps become a leading authority on the theory of relativity (Einstein was a patent clerk). Perhaps they may attend one of the free schools/Universities to educate themselves in a field in which they're interested.
Extrapolate the above for every single good/service. Everything in the local economy free. No financially related crime. The ability for anyone to learn whatever they would like. Unproductive jobs (of which there are many i.e. lawyers, software developers etc...) would diminish thereby freeing up more people to help in there local community. Less reliance on fuel etc... the list is endless.
Technically the financial system still exists in it's current form, but money is treated as make believe (instead of real, heh), with cashflow virtualised instead of physical or tied to a unit of confidence, I mean currency in some other country. Our local economy becomes entirely free in more ways than financial. NOW we can move swiftly towards some form of resource based economy where the people matter and without budget constraint... amongst other things.